Pharmacist Ventures, Inc.

I. Issue
a. Subject

The main issue of the company is the decline in sales and profitability in the last six
months.

b. Purpose

Address the problems the company is currently under to recover the decline in
sales and profit.

c. Main Argument

The company has incurred decline in sales and profit due to the stiff competition
between the direct clients of the company and the drugstores established by the
company, and the improper monitoring of stocks.

d. Background Information

Pharmacist Ventures, Inc. is a sole distributor of generic products manufactured by

Biopharmaceutical Research Lab and Drugmaker’s Lab. It was established in 1995
with only one main distribution center located in Binondo, Manila. In 1996 they
expanded their operation by opening ten drugstores outlets located in the south
and north areas to augment the increasing number of existing distributors.

Pharmacist Ventures, Inc. offers a 30% mark-up to its direct clients while they offer
50% mark-up to the drugstores established by the company. Improper monitoring
of stocks is encountered in the distribution center since there are products lapses.
The expiration date is commonly overlooked by the pharmacist due to the multiple
role of the pharmacist such as product forecasting, inventory and Customers
Relation Officer.

Location of Drugstores Outlets

1. Bulihan, Cavite
2. Barangka, Cavite
3. Novaliches
4. Dagat-dagatan, Tondo Manila
5. 11th Avenue, Quezon City
6. Murphy, Quezon City
7. Libertad, Mandaluyong City
 8. Cabuyao, Laguna
9. 3rd Avenue, Quezon City
10. GMA

e. Importance

The mentioned problems should be addressed in order to avoid further decline in

sales and profit.

II. Solution
a. Step-by-step Plan

The solutions that is recommended for Pharmacist Ventures, Inc. are, to lower
the mark up price to the drugstores established the company. Focus on one area either
the north or south, of the established drugstore, were the stream of clients is strongest,
lastly is the transfer of staff from the closed branches of the drugstores to perform task
that will help the pharmacist.

b. Benefits
 By lowering the mark up price of the distributed drugs to the established
drugstores of the company, the prices of the drugs they sell can be lowered
down and can compete with the low prices of the other drugstores, in effect
more consumers will be enticed to buy in the drugstores.
  By focusing in the areas with the higher number of consumers and closing
down the drugstores with less costumers there will be less expenses.
 By transferring staff/personnel to the drugstores they can help the burden of
the pharmacist and avoid the problem of improper inventory of stocks. The
stocks will be checked and products will not lapse their expiration data.
c. Potential Obstacles
